Search form

Search form

IFA Hotels & Resorts is talking with investors in the Middle East about selling the Fairmont Dubai, according to Bloomberg. Gabriel Matar, Jones Lang LaSalle's head of hotels in the Middle East and Africa, said a deal could come in the third quarter. IFA is partly owned by Saudi billionaire Prince Alwaleed Bin Talal.

Related Summaries

Lifestyle and boutique hotel properties are gaining popularity in the Middle East, although local investors still favor branded boutiques over riskier independent properties, this feature says. "In developing markets, the security and safety the (lifestyle) brands bring to guests are key. Anyone from Europe and the (United States) coming to the Middle East have a preference for staying with the big brands due to their familiarity and perception of the quality provided over unbranded boutique hotels," said Hala Matar Choufany, managing director at HVS Dubai.

Hilton Worldwide has revealed plans to open 14 more hotels in Saudi Arabia in the next two years, for a total of about 7,000 additional rooms in its inventory. Hilton and a number of global hotel chains are eyeing the country because of its growth potential. "The Saudi money is abundant with the oil price now. In Saudi Arabia, there are huge expectations about internal tourism, which needs infrastructure," said Gabriel Matar of Jones Lang LaSalle Hotels for the Middle East and Africa.

There's little justification for oil prices above $100 a barrel, said Saudi Prince Al-Waleed bin Talal. Based on supply and demand, oil should sell for $70 to $80 a barrel, he said. The price should come down to dissuade Europe and the U.S. from increasing development of alternative energy sources, Talal said.

A partnership of U.S.-based Colony Capital and Prince Alwaleed bin Talal of Saudi Arabia today said it plans to purchase Fairmont Hotels & Resorts as part of a deal worth $3.9 billion. The luxury Canadian hotel chain will be combined with Colony and Prince Alwaleed's luxury hotel group Raffles creating a hotel group with 120 hotels in 24 countries. The offer trumps the one made by billionaire Carl Icahn for controlling interest of Fairmont in December.